OFA Commentary: January 31, 2019
By Steve Brackenridge, Director, Ontario Federation of Agriculture Farm property taxes are not a new topic for Ontario agriculture, but they can be a complicated one. Property taxes are intended to pay for municipal services. The residential rate is set to pay for services required by households, including recreation, health and protection services. Farm families pay the residential tax rate on their homes because our families need those municipal services like everyone else. Property taxes reflect the assessed value of a property so as property values rise, so do the property taxes. This is for simplicity as well as reflecting the notion that higher value homes consume more services. Because unserviced farmland does not demand nor consumes a lot of municipal services it is taxed at up to 25% of residential tax rates. Lower taxes are paid because less service is required. The legislation recognizes this fact but also has flexibility built in so that farmland rates can be less than 25% of residential rates if the situation demands a new proportion. This built-in flexibility is key – and accommodates the situation that Ontario is currently facing where farmland values (and hence taxes) are escalating faster than for residences. Since 2016, farm property taxes have risen by an average of 64% across Ontario, while residential rates in rural areas have been relatively flat. And the shift continues, with farmers paying a disproportionate amount of property taxes compared to the municipal services they use. In other words, the municipal tax burden has shifted to unserviced farmland and away from the residences and enterprises that actually need and use the municipal services. The Ontario Federation of Agriculture (OFA) believes some municipalities need to adjust their farm property tax rate, and that’s why we’ve been regularly meeting with municipalities for the past two years to discuss the system. OFA will continue to work with individual municipalities and local federations to help municipal councillors adjust to a fair farm property tax system. Higher farm taxes to pay for services that farmers (and their land) are not using is simply unfair. The legislation provides the means to correct this unfair tax burden. We are working with municipalities to make the necessary changes to ensure competitive and sustainable farms across Ontario. For more information on the farm property tax system visit ofa.on.ca/resources/farmland-tax-puzzle or for farm property assessment information visit ofa.on.ca/resources/farm-property-assessment-notice-information. -30- For more information, contact: Steve Brackenridge Director Ontario Federation of Agriculture 705-872-7629 Neil Currie General Manager Ontario Federation of Agriculture 519-821-8883
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Guelph, ON [January 24, 2019] – The Ontario Federation of Agriculture (OFA) is encouraged by the provincial government’s decision to remove Schedule 10 from the proposed Bill 66, Restoring Ontario’s Competitiveness Act, 2018. This movement signals the government’s willingness to listen to the concerns of Ontario agriculture.
Schedule 10 proposed an amendment to the provincial Planning Act that would have given municipalities the ability to pass bylaw changes that could use primary farmland for any type of development. Schedule 10 was part of the government’s open-for-business bylaws. “This announcement by the government is great news for Ontarians and the 38,000 farm families the OFA represents,” says Keith Currie, OFA president. “Farmland is a finite resource and we must do everything to protect it for food production.” On January 21 OFA sent a formal letter to Economic Development Minister, Todd Smith stating its serious concerns about Schedule 10 and the impact the proposed legislative changes would have on Ontario’s agri-food sector. On January 23 Ontario’s Minister of Municipal Affairs and Housing, Steve Clark, announced the government would withdraw the Schedule 10 provisions under Bill 66. “We will continue to work together with the Ontario government to advocate for the best interests of the agri-food sector and rural communities. Together we can create greater prosperity across Ontario that isn’t at the expense of the province’s farmland resource,” says Currie. The Ontario Federation of Agriculture (OFA) is the largest general farm organization in Ontario, representing 38,000 farm families across the province. As a dynamic farmer-led organization based in Guelph, the OFA works to represent and champion the interests of Ontario farmers through government relations, farm policy recommendations, research, lobby efforts, community representation, media relations and more. OFA is the leading advocate for Ontario’s farmers and is Ontario’s voice of the farmer. -30- For more information: Keith Currie President Ontario Federation of Agriculture [email protected] Neil Currie General Manager Ontario Federation of Agriculture [email protected] By Keith Currie, President, Ontario Federation of Agriculture
There’s something exciting about starting a brand new year. The opportunities and possibilities are endless, and turning the calendar allows us to start with a clean slate for another growing season. And who doesn’t want to put the harvest challenges of 2018 behind us? At the Ontario Federation of Agriculture (OFA), we’re kicking off 2019 with a renewed focus on our advocacy work for the agri-food sector and rural communities. Many of our key areas for this year are a continuation of the advocacy we set out in our Producing Prosperity in Ontario campaign – a call for greater infrastructure investments in the agri-food sector that will build capacity and create greater economic development in our communities. Natural gas continues to be a big priority. The provincial government has announced some plans for expanded natural gas and we are waiting for more details. We continue to push for complete access to affordable natural gas across the entire province. Our farms and rural businesses depend on it to remain competitive. Another key infrastructure requirement to keep us connected and competitive is high speed internet in rural and northern communities. Rural Ontario continues to be disadvantaged compared to our urban neighbours, when it comes to our ability to connect for services, information, e-commerce and education. OFA will continue to focus on the need for a stable rural school network. Schools provide a critical hub for our communities that extend beyond the school day, and we are working with government to ensure there is a solid process for evaluating and assessing rural schools. Our communities also depend on continuous infrastructure improvements to ensure our roads and bridges support the movement of agricultural equipment. Water quality is another key priority for OFA. As part of the Thames River Phosphorus Reduction Collaborative, we continue to work together on this team to reduce phosphorus losses to Lake Erie. We also will be watching closely as the provincial government releases its plan for reducing red tape and regulations, to ensure the impacts on the agri-food sector are considered. We have a busy year ahead with work on a broad range of files that impact the ability of our 38,000 farm members to operate sustainable and productive farm businesses. I’m looking forward to the prospects for a productive and prosperous year for Ontario’s agri-food sector in 2019. -30- For more information, contact: Keith Currie President Ontario Federation of Agriculture 705-441-3362 Neil Currie General Manager Ontario Federation of Agriculture 519-821-8883 |
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